Back in November 2008, then Russian president Dmitry Medvedev made a stark warning to NATO: "Russia will deploy Iskander missile systems in its enclave in Kaliningrad to neutralize, if necessary, the anti-ballistic missile system in Europe."
One day after the biggest jump in stocks in two months on what has still been an undetermined catalyst, overnight global equities did a U-turn with European stocks falling toward a one-month low and U.S. stock index futures declining, as crude oil dropped toward $44 a barrel. A driver the move lower was a sharp reversal in the USDJPY which dropped 100 pips from yesterday's highs which took places just as Goldman predicted the USDJPY has finally bottomed, facilitated by a weaker dollar (also following a Goldman report yesterday forecasting the USD was about to surge).
Iran has accused the United States of theft and is planning to sue after the U.S. Supreme Court ruled that American terror victims should receive $2 billion from frozen Iranian funds. The Islamic Republic has been blamed for terrorist bombings in Lebanon and Saudi Arabia. A 1983 attack on a Marine barracks in Beirut was attributed to Hezbollah, an Iranian affiliate group with popular local support, in revenge for Israeli atrocities in the war. Both Hezbollah and Iran deny the claim.
Back on February 15, just as the USD was about to plunge unleashing a global risk-on rally as a result of "Yuan stability", Goldman triumphantly announcecd its latest trading recommendation: short gold (at $1,205) with a target of $1000 and a 7% stop loss.